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Zacks.com featured expert Kevin Matras highlights: Sallie Mae, United Continental, Celgene and Ligand Pharmaceuticals

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For Immediate Release

Chicago, IL – March 13, 2019– Stocks in this week’s article include Sallie Mae (SLM - Free Report) , United Continental Holdings, Inc. (UAL - Free Report) , Celgene Corp. (CELG - Free Report) and Ligand Pharmaceuticals Inc. (LGND - Free Report) . Kevin Matras screens for companies showing their 'first' profit and explains why they are ones to watch.

Screen of the Week written by Kevin Matras of Zacks Investment Research:

4 High Earnings Yield Stocks to Strengthen Your Portfolio

If you are not sure whether to invest your money in bonds or stocks, an important parameter, which can show you the right direction, is earnings yield. It is the reciprocal of the price-to-earnings (P/E) ratio. This ratio can be effectively used for figuring out undervalued stocks. Also, this ratio is handy for comparing stocks with the market or fixed income securities.

Earnings yield can be calculated as (annual earnings per share/market price) x 100. While comparing similar stocks, the one with high earnings yield should provide higher returns.

This ratio is very useful for comparing the performance of the market with the 10-year Treasury yield. When the yield of the market index exceeds the 10-year Treasury yield, stocks can be said to be undervalued in comparison to bonds. This implies that investing in the stock market is a better choice for a value investor.

However, while T-bills are free of risks, investing in stocks always carries some inherent risks. Hence, it will be wise to add a risk premium to the Treasury yield while comparing with the earnings yield of a stock or the broader market.

For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/358920/4-high-earnings-yield-stocks-to-strengthen-your-portfolio

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

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